Exchanges provide new opportunities for American bettors of all levels

Prophet Exchange and Sporttrade are the first regulated sports betting exchanges in the United States. They operate like stock markets, with customers buying and selling sports outcomes. The exchange operator takes a commission for brokering the transaction, typically around 2% of the net profit of winning side of wager. The commission is often cheaper than the 10% or more of vigorish charged by sportsbooks. Exchanges compete against sportsbook with their pricing. Prophet Exchange experienced a 117% increase in volume from Week 1 to Week 2 of NFL season.

Sporttrade is a Philadelphia-based company that deals in probabilities. It has partnered with market makers who create the probabilities and provide the liquidity on the different markets offered. Professional bettors find it easier to participate in the exchanges than casual betters. Bill Krackomberger is worried about the size of the markets that will be available. He hopes they will have seeded markets. The exchanges provide new opportunities for American bet takers.

Mojo, a platform that facilitates buying and selling shares of career statistical performances for NFL players, launched Monday in New Jersey. Prophet Exchange entered the U.S. market in late 2018, but it will stop in 2020 due to the coronavirus pandemic. Exchanges have been a part of the sports betting market for more than a decade in the UK, where they attract 10% of wagered in that market. Jason Trost believes the exchange model is the future of sports gambling in U.,S., but he thinks it's not as flexible or powerful as traditional sportsbooks.